-
RBA’s March minutes reinforce “Lower for longer” view
Following a bond-bashing speech on March 10 by Reserve Bank of Australia Governor Philip Lowe, the minutes of the March RBA meeting reinforce his recent message of "lower for longer". The minutes dismissed ideas that rising commodity prices might translate into sustained higher prices as long as there remained substantial slack in the rest of the economy, in particular labour markets and wages. Perhaps the key phrase from the minutes is this "The international experience prior to the pandemic had underscored that a sustained period of tightness in labour markets would be needed in order to generate increases in ... (full story)